Corporate tax return guidance notes: Section 3

Question 11: Is the company a large corporate retailer as part of a group of associated companies?

Question 11 will only apply to companies which have ticked the status large corporate retailer in question 2.

You should tick yes to this question if you are a large corporate retailer as part of a group of associated companies.

Broadly an associated company is a company which derives 60% of its turnover from retail sales in Jersey and is under the control of the same person or persons as another company which also derives 60% of its turnover from retail sales in Jersey.

The principles relating to companies which are large corporate retailers are in Part 17 1A of the Income Tax Law.

Question 12: Profits subject to tax at 0%

This question may apply to the following:

a company chargeable to tax at the rate of 0% under the provisions of Article 123C of the Income Tax Law
a company importing and supplying hydrocarbon oil within Article 123CAA of the Income Tax Law which also has profits chargeable to tax at the rate of 0%
a company which is a large corporate retailer* within Part 17 1A of the Income Tax Law and is chargeable to tax at the rate of 0% by virtue of Article 123L(2) of the Income Tax Law.

You are required to declare the amount of assessable profit subject to tax at the rate of 0%. The amount of assessable profit subject to tax at 0% is the amount of profit after allowable deductions, capital allowances, losses brought forward and group relief.

The assessable profit must include any taxable COVID government financial support. This includes the Co-funded Payroll Scheme, Fisheries Support Scheme, Visitor Accommodation Support Scheme, Visitor Attractions and Event Scheme and Fixed Costs Support Scheme.

Coronavirus support for businesses and how it is taxed

For example:

Company I is a large corporate retailer. It has a profit after allowable deductions (sometimes described as the tax adjusted profit) of £400,000. The company is due capital allowances of £60,000 (question 12a) and losses brought forward of £10,000 (question 12b).
The assessable profit subject to tax at 0% to be entered in the box alongside question 12 is £330,000.* This is because Article 123L(2) applies to the company.
As company I is a large corporate retailer they should also enter £0 in the boxes alongside questions 13 and 15.
*£400,000 - (£60,000 + £10,000) = £330,000

Enter a positive whole number. Ignore pence.

Enter £0 in the box alongside question 12 if, after allowable deductions, capital allowances, losses brought forward and group relief there is no assessable profit subject to tax at 0%.

If there is a loss after allowable deductions enter £0 in the box alongside question 12.

You are not required to submit a tax computation, however you may wish to include this in section 9 when you attach the financial accounts / statements.

*Large corporate retailers are presented with questions 12, 13 and 15. This is because a large corporate retailer may be subject to tax at the rate of:

0%
the tapered rate
the 20% rate

Question 12a: Capital allowances due

Enter the amount of the capital allowance which has been deducted in calculating the amount of the assessable profit subject to tax at 0% entered in question 12.

Capital allowances are calculated in accordance with Part 12A of the Income Tax Law.

Enter the amount of the capital allowance deducted or if no allowance is deducted enter £0.

Question 12b: Losses brought forward

Enter the amount of any loss brought forward which has been deducted in calculating the amount of the assessable profit subject to tax at 0% entered in question 12.

Relief for losses is calculated in accordance with Part 13 of the Income Tax Law.

Enter the amount of the brought forward losses deducted or if no brought forward losses are deducted enter £0.

Question 12c: Group relief

Enter the amount of group relief which is deducted in calculating the amount of assessable profit subject to tax at 0% entered in question 12.

The principles for calculating and claiming group relief are in Article 123EA of the Income Tax Law.

Enter the amount of the group relief deducted or if no group relief is deducted enter £0.

Question 13: Profits subject to the large corporate retailer tapered rate

Question 13 will only appear to a company which is a large corporate retailer.

You are required to declare the assessable profit subject to the large corporate retailer tapered rate*. The amount of assessable profits subject to tax at the large corporate retailer tapered rate is the amount of profit after allowable deductions, capital allowances, losses brought forward and group relief.

*A large corporate retailer is subjected to the tapered rate if the computation of tax is within Article 123L(4) of the Income Tax Law.

Coronavirus support for businesses and how it is taxed

For example:

Company J is a large corporate retailer. It has profits after allowable deductions (sometimes described as the tax adjusted profit) of £750,000. It is due capital allowances of £10,000 (question 13a), losses brought forward £10,000 (question 13b) and group relief of £10,000 (question 13c).
The assessable profit subject to the large corporate retailer tapered rate to be declared in the box alongside question 13 is £720,000*.
As the company is a large corporate retailer they should also enter £0 in the boxes alongside questions 12 and 15.
*£750,000 - (£10,000 + £10,000 + £10,000) = £720,000

Enter a positive whole number. Ignore pence.

You are not required to submit a tax computation, however you may wish to include this in section 9 when you attach the financial accounts / statements.

Question 13a: Capital allowances due

Enter the amount of the capital allowance which has been deducted in calculating the amount of the assessable profit subject to tax at the large corporate retailer tapered rate entered in question 13.

Capital allowances are calculated in accordance with Part 12A of the Income Tax Law.

Enter the amount of the capital allowance deducted or if no allowance is deducted enter £0.

Question 13b: Losses brought forward

Enter the amount of any loss brought forward which has been deducted in calculating the amount of the assessable profit subject to tax at the large corporate retailer tapered rate entered in question 13.

Relief for losses are calculated in accordance with Part 13 of the Income Tax Law.

Enter the amount of the brought forward losses deducted or if no brought forward losses are deducted enter £0.

Question 13c: Group relief

Enter the amount of group relief which is deducted in calculating the amount of assessable profit subject to tax at the large corporate retailer tapered rate entered in question 13.

The principles for calculating and claiming group relief are in Article 123EA of the Income Tax Law.

Enter the amount of the group relief deducted or if no group relief is deducted enter £0.

Question 13d: Tapered rate applied (%)

This is the rate calculated in accordance with Article 123L(5).

The rate should be calculated to 2 decimal places (eg if the tapered rate calculated in accordance with Article 123L is 17.543%, enter 17.54%)

Question 14: Assessable profits subject to tax at 10%

This question will only apply to a company which is a financial services company.

You are required to declare the assessable profit subject to tax at 10%. The amount of assessable profits subject to tax at 10% is the amount of profit after allowable deductions, capital allowances, losses brought forward and group relief.

Coronavirus support for businesses and how it is taxed

For example:

Company K is a financial service company. It has a profit after allowable deductions (sometimes described as the tax adjusted profit) of £100,000. The company is due capital allowances of £5,000 (question 14a), losses brought forward £2,500 (question 14b) and group relief of £3,000 (question 14c).
The assessable profit subject to tax at 10% to be declared in the box alongside question 14 is £89,500*.
*£100,000 - (£5,000 + £2,500 + £3,000) = £89,500

Enter a positive whole number. Ignore pence.

Enter £0 in the box alongside question 14 if, after allowable deductions, capital allowances, losses brought forward and group relief there is no assessable profit subject to tax at 10%.

If there is a loss after allowable deductions enter £0.

Question 14a: Capital allowances due

Enter the amount of the capital allowance which has been deducted in calculating the amount of the assessable profit subject to tax at 10% entered in question 14.

Capital allowances are calculated in accordance with Part 12A of the Income Tax Law.

Enter the amount of the capital allowance deducted or if no allowance is deducted enter £0.

Question 14b: Losses brought forward

Enter the amount of any loss brought forward which has been deducted in calculating the amount of the assessable profit subject to tax at 10% entered in question 14
Relief for losses are calculated in accordance with Part 13 of the Income Tax Law
Enter the amount of the brought forward losses deducted or if no brought forward losses are deducted enter £0

Question 14c: Group relief

Enter the amount of group relief which is deducted in calculating the amount of assessable profit subject to tax at 10% entered in question 14.

The principles for calculating and claiming group relief are in Article 123EA of the Income Tax Law.

Enter the amount of the group relief deducted or if no group relief is deducted enter £0.

Question 15: Profits subject to tax at 20%

This question will only apply to the following entities:

a utility company
a company trading in the supply/importation of hydro carbon oils
an unincorporated body / association or co-operative
a large corporate retailer company subject to tax at 20%
a company in the cannabis industry

You are required to declare the assessable profit subject to tax at 20%. The amount of assessable profits subject to tax at 20% is the amount of profit after allowable deductions, capital allowances, losses brought forward and group relief.

Coronavirus support for businesses and how it is taxed

For example:

Company L is a company trading in the supply / importation of hydro carbon oils. It has a profit after allowable deductions (sometimes described as the tax adjusted profit) of £250,000. The company is due capital allowances of £6,000 (question 15a), losses brought forward of £2,000 (question 15b) and group relief of £2,000 (question 15c).
The assessable profit subject to tax at 20% to be entered in the box alongside question 15 is £240,000.*
As the company may also have profits subject to tax at the rate of 0% they are also required to complete questions 12 to 12c as appropriate.
*£250,000 - (£6,000 + £2,000 + £2,000) = £240,000

Enter a positive whole number. Ignore pence.

Enter £0 if, after allowable deductions, capital allowances, losses brought forward and group relief there is no assessable profit subject to tax at 20%.

If there is a loss after allowable deductions enter £0.

Question 15a: Capital allowances due

Enter the amount of the capital allowance which has been deducted in calculating the amount of the assessable profit subject to tax at 20% entered in question 15
Capital allowances are calculated in accordance with Part 12A of the Income Tax Law
Enter the amount of the capital allowance deducted or if no allowance is deducted enter £0

Question 15b: Losses brought forward

Enter the amount of any loss brought forward which has been deducted in calculating the amount of the assessable profit subject to tax at 20% entered in question 15
Relief for losses are calculated in accordance with Part 13 of the Income Tax Law
Enter the amount of the brought forward losses deducted or if no brought forward losses are deducted enter £0

Question 15c: Group relief

Question 15c will not appear to an unincorporated body, association or co-operative.

Enter the amount of group relief which is deducted in calculating the amount of assessable profit subject to tax at 20% entered in question 15.

The principles for calculating and claiming group relief are in Article 123EA of the Income Tax Law.

Enter the amount of the group relief deducted or if no group relief is deducted enter £0.

Question 16: Is the company claiming losses from a surrendering company?

Question 16 and its sub questions will not appear to an unincorporated body, association or co-operative.

If the company is claiming group relief losses from a surrendering company you should enter yes to this question.

Question 16a: Surrendering companies

Enter the number of companies which are surrendering losses.

The number of surrendering companies should equal the number of companies for which information in questions 16b and 16c is provided.

If the numbers do not match invalid count will display.

Question 16b: Surrendering company TIN

For each company surrendering losses enter the TIN.

Question 16c: Amount surrendered

Enter the amount of the loss surrendered for each company.

You can add the information for additional companies by clicking on add surrendering company.

Question 16d: Have you attached the claim documentation?

In order for a claim to group relief to be allowed you will need to provide documentation in support of the claim.

If you are attaching the documentation when submitting the return you should answer yes to question 16c.

A PDF copy of the application for group relief should be attached when you complete section 9.

The rules relating to group relief are in Article 123EA and Article 123F of the Income Tax Law.

Question 16e: Is the company surrendering losses to a claimant company?

If the company is surrendering group relief losses to a claimant company you should answer yes.

Question 16f: Claimant companies

Enter the number of companies which are claiming the losses.

The number of companies claiming the losses should equal the number of companies for which information in questions 16g and 16h is provided.

If the numbers do not match the return will display invalid count in question 16e.

Question 16g: Claimant company TIN

For each company claiming the losses enter the TIN.

Question 16h: Amount surrendered

Enter amount of the loss claimed for each company.

You can add the information for additional companies by clicking on add claimant company.

Question 16i: Have you attached the declaration documentation?

If you wish to attach the documentation relating to the surrendering of losses to a claimant company / claimant companies you should tick yes.

A PDF copy of the documentation surrendering group relief losses should be attached when you complete section 9.

The rules relating to group relief are in Article 123EA and Article 123F of the Income Tax Law.

Question 17: Are there any losses/capital allowances to be carried forward?

If you are carrying forward losses and/or unutilised capital allowances you should enter yes.

Questions 17a and 17b: Amount of losses/capital allowances to carry forward

Enter the amount of the losses carried forward or unutilised capital allowances carried forward as appropriate. Where there are no losses carried forward or unutilised capital allowance carried forward enter £0.

Question 18: Are you claiming double taxation relief or unilateral relief?

If you are claiming double taxation relief or unilateral relief you should enter yes.

The principles for calculating relief for double taxation are in Part 14 and the principles for calculating unilateral relief are in Part 14A of the Income Tax Law.

Question 18a: The amount of relief claimed

Enter the amount of the tax credit which you are claiming as a deduction from the amount of tax charged.

For example:

Company M is a financial services company. It has assessable profit subject to tax at 10% of £100,000 (question 14).
As part of these profits have been subject to tax in a foreign jurisdiction the company is entitled to relief for double taxation. The tax credit is calculated as £500. The assessment of company M will be as follows:
Assessable profit £100,000 at 10% = Tax credit Net tax due	£10,000 £500 £9,500
Company M will enter £500 in the box alongside question 18a.

Question 18b: Have you attached the claim documentation?

In order for a double taxation or unilateral relief claim to be allowed you will need to provide the supporting documentation.

If you are attaching the documentation when submitting the return you should answer yes.

Documentation should include evidence of the foreign tax paid.

A PDF copy of the claim documentation should be attached when you complete section 9.

Question 19: Are you claiming credits in respect of dividends from Jersey companies?

If you are claiming credits in respect of dividends from Jersey companies you should enter yes.

Credits in respect of dividends are calculated under the provisions of Article 88 of the Income Tax Law.

Question 19a: The amount of relief claimed

Enter the amount of the credit in respect of dividends which you are claiming as a deduction against the tax charged.

For example:

Company N is a financial services company. It has assessable profit subject to tax at 10% of £150,000 (question 14).
The company is in receipt of a dividend from a subsidiary company. The credit calculated under the provisions of Article 88 of the Income Tax Law is £600. The assessment of company N will be as follows:
Assessable profit £150,000 at 10% = Tax credit Net tax due	£15,000 £600 £14,400
Company N will enter £600 in the box alongside question 19a.

Question 19b: Have you attached the claim documentation?

In order for a claim for credits in respect of dividends to be allowed you will need to provide the documentation in support of the claim.

If you are attaching the documentation when submitting the return you should answer yes to question 19b.

Documentation should include the dividend certificates issued by the payer.

A PDF copy of the claim documentation should be attached when you complete section 9.